Plus, this doesn't really explain Europe's tech sector dumping, since from a quick search this is entirely an American thing.
So maybe you're just as wrong as anyone else?
It could explain part of Europe's dumping. If the hiring market in the US is weak, some of those displaced devs could work for European software businesses, at least on a contractor basis, because remote is a thing. I've done that. I'm not doing it now (I'm globally unemployed, ha) but I did do it in the past. Was quite nice actually, the European company I worked with actually paid almost immediately when invoiced, rather than than drag it out 30-60 days as is customary in the US.
I don't think 174 is the entire story -- I do think interest rates play a significant part, for one thing. But it's definitely part of the story, and definitely plays into some level of Europe's tech woes.